FxWirePro: AUD/USD drops as Australian unemployment spikes

• AUD/USD dipped on Thursday  as  s weaker-than-expected Australian labour market data weighed on Australian dollar.

• Australian employment unexpectedly fell in April, while the jobless rate rose to its highest level since late 2021, suggesting the labour market may be easing enough to reduce pressure for a near-term rate hike.

• Australian employment fell by 18,600 in April versus a revised 23,300 gain in March, well below expectations for a 15,000 increase, according to the Australian Bureau of Statistics. Full-time jobs dropped 10,700 after a sharp rise in the previous month, adding to signs of softening labour market conditions.

• The unemployment rate rose to 4.5%, the highest since November 2021, versus expectations for it to remain unchanged at 4.3%.

•  Immediate resistance is located at 0.7170 (38.2%fib), any close above will push the pair towards 0.7186(SMA20).

•  Support is seen at 0.7101(Lower BB) and break below could take the pair towards 0.7083(23.6%fib).

 Recommendation: Good to sell  around 0.7130 with stop loss of 0.7180 and target price of 0.7050